What is suggested before purchasing an Epcon Communities franchise regarding local laws and regulations?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Epcon Communities business and project are subject to numerous laws and governmental regulations that apply to businesses generally. In addition, you must comply with a variety of federal, state and/or local laws and regulations concerning zoning and building codes, licensing requirements for contractors, property managers and real estate salespersons, the formation and management of condominium and homeowner associations, occupational health and safety on the construction site, housing finance, the federal Interstate Land Sales Full Disclosure Act, equal housing laws, the Fair Housing Act and the Americans with Disabilities Act, as well as the Accessibility Guidelines promulgated under each of these laws. Before you purchase an Epcon Communities franchise, we suggest that you check on the existence and the requirements of these laws and regulations in your area. We do not warrant to you that the architectural plans, specifications, condominium association materials and site plan samples provided as part of our Development System will comply with the laws and regulations applicable in the state and local governmental jurisdictions in which you decide to locate your project. You will be required to engage a local architect and legal counsel to assist you in determining which state and local government agencies are involved in regulating real estate development activity in your area and in making any modifications to the architectural plans, specifications, sample condominium association materials and site plan samples that are necessary to permit your project to be in compliance with all applicable laws and regulations. You must provide us with a letter from your architect detailing all of the changes made to the architectural plans, if any. If you are unable to obtain permits and approvals from governmental authorities regarding a particular project site within thirty-six months after signing the Franchise Agreement, you may terminate your Franchise Agreement if you provide timely notice to us of your desire to terminate the agreement and you pay us a termination fee. If governmental authorities require you to make modifications to the plans to gain approval or obtain a permit, you must comply with these requirements in order to move ahead with your project.
You must pay us the Initial Franchise Fee and you may be required to pay us the Minimum Monthly Royalty regardless of whether you commence construction or complete development of a project or build any Units.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, prospective franchisees should check on the existence and requirements of local laws and regulations before purchasing a franchise. The Epcon Communities business and project are subject to numerous laws and governmental regulations that apply to businesses generally, as well as federal, state, and local laws and regulations concerning zoning and building codes, licensing requirements for contractors, property managers, and real estate salespersons. These also include the formation and management of condominium and homeowner associations, occupational health and safety on the construction site, housing finance, the federal Interstate Land Sales Full Disclosure Act, equal housing laws, the Fair Housing Act, and the Americans with Disabilities Act.
Epcon Communities does not guarantee that the architectural plans, specifications, condominium association materials, and site plan samples provided as part of their Development System will comply with all applicable state and local laws. Franchisees are required to engage a local architect and legal counsel to help determine which state and local government agencies regulate real estate development activity in their area. These experts will also assist in making necessary modifications to the architectural plans, specifications, sample condominium association materials, and site plan samples to ensure the project complies with all applicable laws and regulations. Franchisees must provide Epcon Communities with a letter from their architect detailing any changes made to the architectural plans.
If a franchisee is unable to obtain the necessary permits and approvals from governmental authorities for a particular project site within 36 months after signing the Franchise Agreement, the franchisee may terminate the Franchise Agreement. To do so, they must provide timely notice to Epcon Communities and pay a termination fee. However, if governmental authorities require modifications to the plans to grant approval or issue a permit, the franchisee must comply with these requirements to proceed with the project. It is important to note that franchisees must pay the Initial Franchise Fee and may be required to pay the Minimum Monthly Royalty, regardless of whether construction commences or development of a project is completed.